can you post on a new thread? i'm interested about your approach
i think we may have a good discussion about it
thanks
Tastytrade Review + Criticism
- Thread starter Lucas
- Start date
can you post on a new thread? i'm interested about your approach
i think we may have a good discussion about it
thanks
The whole thing is rotten to the core and is a scheme to generate fat commission and profits for TOS trading desks though bad order execution.
It's worse than the Clinton Foundation, because it's theft against ordinary people who trade these options and enter the orders badly and get filled badly, unlike Hillary foundation which hurt mostly rich people who donated to it .
I imagine thousands of people have collectively lost millions on dough, TOS and other Ameritrade platforms due to the riskiness of the trades and also sky-high commission and bad order fills.
Without TOS /Ameritrade there would be no financial incentive for these 'educational' videos which are fronts for theft, and that's really what it is because of bad order execution mainly but also commissions.
hardly anyone writes about bad order execution in the options market against retail traders,which is far bigger problem than HFT and other stuff that gets more media attention but isn't nearly as bad.
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Explain bad execution. In many stocks , the options are wide and priced poorly.
If you trade liquid options, you should never have an execution problem.
Post an example of "bad order execution"
If you trade liquid options, you should never have an execution problem.
Post an example of "bad order execution"
https://www.elitetrader.com/et/thre...hink-or-swim-option-market-maker-scam.299853/
If the bid for example is at 1.3 and the ask is at 2.2, TOS defaults to 1.3 or 2.2 (depending if you are buying an option position or selling it) when you open the order form. If you do not adjust it or if you are careless in placing the order, it will execute at the worst price ($1.3 for selling, $2.2 for buying) despite better prices being available. Ameritrde profits from the difference between the correct price and the executed price. Maybe I'll make a live-trade demonstration of this on Youtube later but I and others have had experience with this happening. it's a myth that illiquid options must always be filled poorly
If the bid for example is at 1.3 and the ask is at 2.2, TOS defaults to 1.3 or 2.2 (depending if you are buying an option position or selling it) when you open the order form. If you do not adjust it or if you are careless in placing the order, it will execute at the worst price ($1.3 for selling, $2.2 for buying) despite better prices being available. Ameritrde profits from the difference between the correct price and the executed price. Maybe I'll make a live-trade demonstration of this on Youtube later but I and others have had experience with this happening. it's a myth that illiquid options must always be filled poorly
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It's also a myth that you shouldn't check the prices before sending an order.
Almost all platforms will default to the current prices.
Almost all platforms will default to the current prices.
there are three prices: the posted bid /ask, the correct price based on the underling math, and the executed price. TOS gives really bad executions
You should really consider using limit orders. You'd probably find that if a 3rd party is paying for your order to your new broker for " better executions" , that someone would probably pick your order up at an even better price sent to a displayed exchange.
But TOS/ameritrade never fills below the limit. they are giving the worst price at every opportunity. TOS/ameritrade is the worst offender of this practice and they generate tons of revenue from payment order flow at the expense of their customers. I don't know about IB or other brokers.
Ashok Yarlagadda
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Thanks for your post.
I am very interested. Please continue. I have a couple of questions:
1. Long stock straddles and short index strangles. How tight are the strangles? Or is it straddles for both the long and the short.
2. How does stock correlation to the index effect the selection.
3. What about stocks that have earnings and expire the end of that week. Stay away from them for this trade?
4. How long does the temporary cheapness last. I.E. how long to you have the opportunity once your screen finds a suitable trade.
5. When to you take profits.
6. An example would be great.
Thanks Again.
I am very interested. Please continue. I have a couple of questions:
1. Long stock straddles and short index strangles. How tight are the strangles? Or is it straddles for both the long and the short.
2. How does stock correlation to the index effect the selection.
3. What about stocks that have earnings and expire the end of that week. Stay away from them for this trade?
4. How long does the temporary cheapness last. I.E. how long to you have the opportunity once your screen finds a suitable trade.
5. When to you take profits.
6. An example would be great.
Thanks Again.